Ever ask yourself, “how am I supposed to pay for THAT?” If you’re a homeowner who has built up equity in your home, the answer is simple: a cash-out refinance. Not sure what a cash-out refinance is? We’ve got you covered.
Did You Know
As time goes on, your home is gaining value or “equity.” Once you’ve built up significant equity (at least 20%) you can withdraw it via a cash-out refinance, a new mortgage replacing your old loan for more than what you currently owe. You keep the difference between the old and new loans (taking into account closing costs) to use however you wish.
How It Works
Let’s say you still owe $150,000 on your home, but its value on the market is worth $300,000 now. That means you’ve generated $100,000 in equity. With a cash-out refinance, you could take out a new mortgage for $240,000 and get $90,000 cash back. Keep in mind, your new mortgage will come with closing costs, a new interest rate and a potentially longer term.
Cash-Out Refi Myths
Not sure if you can believe the hype? Our team of Loan Experts helped crack some of the biggest myths about a cash-out refinance.
| MYTH: You must pay closing costs out of pocket. | VS. | FACT: You can finance up to 100% by rolling costs into the refinance. |
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MYTH: It’s hard to qualify. |
VS. | FACT: Because you already own your home and have established a payment history, it’s typically easier to qualify. |
| MYTH: The process is lengthy and difficult. | VS. | FACT: At PrimeLending, we offer a streamlined digital process. |
Common Uses
Once you’ve got your cash, there’s plenty of ways to make the most of it — and that’s the best part: the choice is yours, because the money is yours. Some common uses of cash-out refinance include:
- Debt consolidation
- Medical expenses
- Education costs
- Home renovations
- You decide
How Do I Get Started?
If you’re ready to cash in on a cash-out, connect with one of our qualified loan experts to learn more about our simple and streamlined process.
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